Business Analysis for Elite Personal Training

2069 Words Oct 10th, 2015 9 Pages
Elite Personal Training

This report adheres to the Academic Honesty Statement the professor has on file for all group members.

Critical Issues
Failing to generate enough money to startup the business
Not having enough clients to remain in business
Situational Analysis
Martin Menard and Mirella Craciun currently work as personal trainers out of Body Worx, a personal training facility in London, Ontario. Menard and Craciun are interested in leaving Body Worx and opening their own facility – Elite Personal Training (Elite). Both trainers are certified by the Canadian Association of Fitness Professionals which will allow them to charge a higher price, as some competing trainers do not have this qualification.
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All profits Elite generates will be as a result of having this equipment, as without the equipment the business would not even open. Risks involved with financing include not being able to meet the required monthly payments. In order for that to happen, however, Elite would have to be operating with less than 18 members per month. Exhibit 3 discusses this option in detail.
Option 3: Marketing
Elite wants to keep its marketing costs low. It was decided that $3,000 should be the budget. This has a low breakeven of 50 sessions or two 48 session packages.

The marketing budget would consist of 2,500 print brochures, 100 custom logo water bottles, and 50 custom logo t-shirts. The print brochures would be distributed by the owners to nearby business buildings to reach the target market of business professionals. They can also ask nearby health stores to feature the pamphlets on their counters. The water bottles and t-shirts would be given clients upon referral sign ups. They can also be used for other promotional reasons.

Due to the industry’s heavy reliance on word-of-mouth, it is assumed that the brochures will result in low conversion. However, it would help to increase Elite’s awareness within its desired market. If 20% of initial customers sign up one friend by the end of the first year, the water bottles and t-shirts would have an ROI of 2.07%. This would result in an additional $5,760 in sales.

The biggest risk in this option would be the money
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